The transaction in brief

• Diös acquires 32 centrally located properties in Umeå, Luleå and Sundsvall with a leasable area of 216 thousand sq.m.
• Through the acquisition Diös strengthens its position in prioritised growth cities and adds a high quality property portfolio and stable cash flows.
• Diös’ property value pro forma increases with SEK 4.5bn to SEK 17.9bn and the rental value increases with approximately SEK 360m to SEK 1,829m, based on the current earnings capacity as of 30 September 2016.
• The main shareholders; AB Persson Invest, Backahill Inter AB and Bengtssons Tidnings Aktiebolag, which together represent approximately 36 per cent of the capital and votes in the company, have committed to subscribe for their respective pro-rata shares of the rights issue. Nordea and Swedbank have agreed to underwrite, subject to customary conditions, the remaining part of the rights issue.
• In addition to the three main shareholders, Pensionskassan SHB Försäkringsförening, representing approximately 6 per cent of the capital and votes in the company, has committed to vote in favour of the rights issue at the extraordinary general meeting.
• The final terms of the rights issue, including subscription price, are expected to be announced no later than 28 December 2016.
• The acquisition is subject to the extraordinary general meeting’s resolution on the rights issue. Assuming that the extraordinary general meeting resolves on the rights issue, the subscription period will run from, and including, 9 January 2017 up to, and including, 23 January 2017.
• Diös will seek customary antitrust clearance from the Swedish Competition Authority.

“To acquire this well-maintained and centrally located property portfolio is a great opportunity for us. We are strengthening our operations and presence in important growth cities, especially in Umeå and Luleå where we have had an ambition to grow for a long period of time. Many of the acquired properties are located in direct connection to our current properties and, in a long-term perspective, we see both revenue synergies as well as economies of scale through the acquisition. We are becoming a larger and more stable company with improved cash flow and even greater opportunities to create value for our shareholders” says Knut Rost, CEO of Diös.

“The acquisition is completely in line with Diös’ long-term strategy and targets of owning and developing properties with proximity to city centres. The Board of Directors has great confidence that the management together with all the employees will incorporate these properties into Diös in a manner that will strengthen the entire company. It is also reassuring that Diös’ three largest shareholders are supporting the expansion and have committed to subscribe for their pro-rata shares in the upcoming rights issue” says Bob Persson, Chairman of the Board of Diös.